Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 298 - AT - Income TaxIncome from service as ‘Fees for technical services’ - estimated income @ 2.6 % on total Sales for working out the profits attributable to the PE in India - income of the PE should be attributed @ 2.6% of the ‘Sales’ made by the GE Overseas entities in India - Held that:- It goes without saying that if an invoice has been cancelled, then that cannot be considered for the purpose of computing income. Under these circumstances, we direct the Assessing Officer to examine this aspect as well and exclude the amount from cancelled invoices, after proper verification. The exercise as discussed above can be done by the AO only if the assessee extends co-operation and furnishes all the relevant agreements or other documents as be called for by the Assessing Officer for determining the amount of income from rendition of services. The ld. AR has undertaken to supply all the necessary documents and details as may be required by the AO. It is made clear that if the assessee fails to supply the information/documents as required by the Assessing Officer, as happened during the course of original assessment proceedings, then the Officer will be entitled draw an adverse inference against the assessee and proceed to make a fair and reasonable estimate. With the above observations, we remit the matter to the file of the Assessing Officer for deciding the above issues afresh in consonance with our above observations after allowing a reasonable opportunity of being heard to the assessee.
|